Market Is Down — But This Only Creates More Demand For A Zero-Fee Trading Solution
Although the cryptocurrency market has taken a substantial fall over the last half year, the demand for zero-fee trading has good reasons to grow. As crypto futures traders see the benefits of profiting from the Digitex Futures Exchange model, the DGTX token demand has the potential to increase, resulting in an overall value increase between now and launch time.
After the cryptocurrency market capitalization plummeted from $800 billion to $260 billion in the span of 6 months, many cryptocurrency holders have parted from their coins. While all cryptocurrencies have taken a hit, it appears that most of the selling is moving into Bitcoin and fiat currencies.
This can be observed with the Bitcoin dominance metric, that displays the percent of the market share that Bitcoin has. For the past few weeks, the metric has been increasing, to some of the highest levels seen since February. Possible reasons for this increased selling into Bitcoin is that it already has a “working product”. Bitcoin aims to be digital gold, a medium of exchange, a unit of account, and it does all of that fantastically.
However, during this savage bear market where most cryptocurrencies have dropped 75% in value, the price of the DGTX token has held its value against fiat and is trading only slightly below its ICO price from 6 months ago. Against ETH the DGTX price has almost tripled in the last 6 months. It is expected that after the release of the Digitex Futures Exchange in December 2018 a surge in demand for DGTX tokens will occur. To get early access to the exchange, join the waitlist now!
What makes the Digitex exchange so disruptive is that the exchange will offer zero-fee trading, made possible by utilizing its base cryptocurrency, the DGTX token. This is huge, as percentage based trading fees add up over time, and take away from making any actual profits. As more users are attracted to zero-fee trading, there will be more demand for Digitex tokens.
Digitex is able to accomplish zero-fee trading via slight inflation (similar to EOS). Every year, a small percentage of the total supply is added, increasing the amount of circulating DGTX. Instead of having a set amount of inflation, users are able to democratically vote on the percent increase. This gives the Digitex protocol immense flexibility for the future.
Unlike most cryptocurrency exchanges, Digitex is creating a futures exchange. Futures exchanges allow you to speculate on the future price of an asset by going long or short. If a trader is long, they expect the price to increase over time. As you’d expect, if a trader is short, they expect the price to decrease over time.
In order to “short” cryptocurrency on a normal exchange, you would need to move into Tether, which has issues of its own. Also, this only allows for 1x leverage. Bitmex, a futures exchange, is currently one of the highest volume cryptocurrency exchanges out there partly due to traders ability to use leverage. In fact, Bitmex recently broke their own trading volume record with $8 billion trading volume over one day.
The creator of Bitmex, Arthur Hayes, has been seen on many news channels like CNBC, explaining why leverage trading can be so powerful, allowing you to hedge your positions. The Digitex exchange will also feature leverage trading up to 100x, allowing traders to trade with more money than they have in order to increase their potential profits. However, there is a catch. If you speculate the price in the wrong direction, you could have your position liquidated!
While Bitmex is extremely successful, it has a few issues:
- Centralized Account Balances
- Auto Deleveraging of Positions
- Illiquid Order Book
Digitex: Non-Centralized State Channels
The Digitex exchange will use non-centralized state channels using Ethereum’s latest blockchain technology called Plasma. Instead of depositing their DGTX tokens into a centralized exchange, traders on the Digitex Futures Exchange will retain their tokens and will lock them into a state channel that updates their profits and losses instantly but without the exchange having physical custody of their tokens.
Digitex Doesn’t Auto Deleverage
In the event your counterparty is too highly leveraged and is liquidated from a losing trade, your position on Bitmex may automatically be reduced. The Digitex exchange plans to have no auto-deleveraging, allowing users to let their winners sail.
Digitex Exchange Has Orderbook Consistency
Another issue with Bitmex is the inconsistent order book in times of massive volatility. The Digitex exchange will prevent this through the use of automated trading robots that place orders with extremely tight spreads. In order to ensure fairness, these bots are programmed to break even on their trades. These Digitex market maker bots have a very large trading bank of 200m DGTX tokens which is 20% of the total supply of DGTX that is dedicated towards providing liquidity on the Digitex futures markets.
On the Digitex exchange, all trades are denominated in terms of DGTX tokens. Even on the BTC/USD pairing, profits are paid out in DGTX tokens. Digitex’s futures exchange plans to include Bitcoin, Litecoin, and Ethereum trading pairs. It is possible in the future to see more cryptocurrencies added.
At the end of the day, what separates DGTX tokens from the rest of the cryptocurrency space is the real demand for the tokens due to their utility. Even though DGTX is a utility token, this does not stop them from having a price increase in the future.
At press time, Digitex tokens are trading for $.0075. This is down slightly from it’s ICO price of $0.008 ($0.01 with a 20% bonus = $0.008) but there has been a 75% drop in most other cryptocurrency prices during that same period. As exchange completion nears, demand for DGTX will surge as thousands of traders start buying DGTX tokens so they can participate in commission-free futures trading. You can buy DGTX tokens now on the cryptocurrency exchange Mercatox:
Like most cryptocurrency investing, there are no guarantees, and most price changes are speculation based. Thank you, as always for supporting this exciting and disruptive new project!
Stay tuned, as we will continue to keep you informed about our company news and development progress. If you haven’t already done so, be sure to join our waitlist to get early access to the zero-fee futures exchange launching at the end of this year.